Redbox 2012 Annual Report Download - page 58

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COINSTAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010
NOTE 1: ORGANIZATION AND BUSINESS
Description of Business
We are a leading provider of automated retail solutions offering convenient products and services that benefit
consumers and drive incremental retail traffic and revenue for retailers. Our core offerings in automated retail
include our Redbox and Coin segments. Our Redbox segment consists of self-service kiosks where consumers
can rent or purchase movies and video games, as well as purchase event tickets. Our Coin segment consists of
self-service coin-counting kiosks where consumers can convert their coin to cash, a gift card or an e-certificate,
among other options. Our New Ventures segment is focused on identifying, evaluating, building, and developing
innovative self-service concepts in the marketplace. Our kiosks are located primarily in supermarkets, drug
stores, mass merchants, financial institutions, convenience stores, and restaurants. Our kiosk and location counts
as of December 31, 2012, are as follows:
Kiosks Locations
Redbox(1) ................................................ 43,700 35,800
Coin .................................................... 20,300 20,100
Total(1) .............................................. 64,000 55,900
(1) Excludes approximately 1,900 kiosks acquired from NCR that had not been replaced with Redbox kiosks or
removed at December 31, 2012. See Note 3—Business Combination for more information on the NCR Asset
Acquisition.
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of Coinstar, Inc., our wholly-owned
subsidiaries, and companies in which we have a controlling interest. Investments in companies of which we may
have significant influence, but not a controlling interest, are accounted for using the equity method of accounting.
All significant intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates in Financial Reporting
We prepare our financial statements in conformity with accounting principles generally accepted in the U.S.
which requires management to make estimates and assumptions that affect the reported amounts in our
consolidated financial statements and our notes thereto. The most significant estimates and assumptions include
the:
• useful lives and salvage values of our content library;
• determination of goodwill impairment;
• lives and recoverability of equipment and other long-lived assets;
• recognition and measurement of current and long-term deferred income taxes (including the
measurement of uncertain tax positions);
• recognition and measurement of purchase price allocation for business combination; and
• loss contingencies.
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